{"id":6066,"date":"2025-02-21T01:26:27","date_gmt":"2025-02-21T01:26:27","guid":{"rendered":"https:\/\/partstech.com\/?post_type=resource-hub&p=6066"},"modified":"2025-08-18T16:02:25","modified_gmt":"2025-08-18T16:02:25","slug":"how-to-increase-your-auto-repair-shops-average-repair-order-value-aro","status":"publish","type":"resource-hub","link":"https:\/\/partstech.com\/resource\/blog\/how-to-increase-your-auto-repair-shops-average-repair-order-value-aro\/","title":{"rendered":"How to Increase Your Auto Repair Shop’s Average Repair Order Value (ARO)"},"content":{"rendered":"\n

(Below is an expert from PartsTech\u2019s 2025 State of General Auto Repair Shops in the U.S. report.) Running your repair shop is about more than fixing cars \u2014 it\u2019s about providing great service, staying efficient, and finding ways to grow despite challenges. That\u2019s why PartsTech surveyed <\/em>752 shops<\/em><\/strong> and spoke with <\/em>industry experts<\/em><\/strong> to bring you a report with key trends, benchmarks, and <\/em>free resources<\/em><\/strong> to help you uplevel your shop in 2025. Whether you want to grow revenue, streamline operations, or retain technicians, this report is packed with insights and tools you can immediately put into action. Download the full report <\/a>to get insights you can use right away <\/strong>to improve your shop, increase revenue, and stay ahead of common industry challenges.<\/em><\/p>\n\n\n\n

How auto repair shops are increasing average repair order value (ARO)<\/h2>\n\n\n\n

752 survey respondents were asked to indicate all actions that positively impact their average repair order
value. The top result made it clear: A solid customer experience strategy is something all shops
should take seriously<\/strong>.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

Industry insights & tips on increasing ARO<\/h2>\n\n\n\n

We asked industry experts to provide their perspectives and tips on the top five activities shops believe most positively impact their ARO.<\/strong><\/p>\n\n\n\n

Enhanced customer experience<\/h3>\n\n\n\n
\n

Actively listening to understand each customer\u2019s vehicle needs and goals positions your shop as a trusted advisor. When customers feel heard, they\u2019re more likely to trust your recommendations, which leads to loyalty and referrals. <\/p>\n\n\n\n

– Maryann Croce, Shop Coach, Small Biz Vantage<\/a><\/p>\n<\/blockquote>\n\n\n\n

Tip: <\/strong>Improve your team\u2019s customer communication skills, with listening as the top priority, so they can provide tailored recommendations that align with each customer\u2019s specific needs.<\/p>\n\n\n\n

Up-selling and cross-selling<\/h3>\n\n\n\n
\n

Our clients expect us to inform them of any and all needed repairs and services their vehicles need. Sometimes, I think there is a stigma around upselling, but it is our moral and ethical duty to provide honest and detailed information about the state of the vehicle and both necessary and critical services so that the client can make the correct decision on the future of their vehicle. <\/p>\n\n\n\n

– Dave Kusa, Shop Coach, The Automotive Coaching and Training (ACT) Group<\/a><\/p>\n<\/blockquote>\n\n\n\n

Tip:<\/strong> It is vitally important to completely inspect each vehicle that enters your shop thoroughly and communicate your complete findings clearly to your customers. This greatly aids in upselling and cross-selling conversations.<\/p>\n\n\n\n

Use of parts matrices<\/h3>\n\n\n\n
\n

Improper parts markup can cost shops $40,000 to $70,000 in missed profits annually. When we first begin coaching a shop, we often see margins between 32% and 44%, but a proper markup matrix can improve these to 55%\u201358%. Fixing your parts pricing is one of the easiest ways to boost profitability.<\/p>\n\n\n\n

– Cecil Bullard, Owner & CEO, The Institute for Automotive Business Excellence<\/p>\n<\/blockquote>\n\n\n\n

Tip: <\/strong>Create a strong matrix, train your team to use it, stick to it, and exercise discipline to avoid emotional discounting. Implementing and sticking to a strategic parts matrix leads to immediate improvements in your shop\u2019s performance.<\/p>\n\n\n\n

Estimate approval via SMS\/email<\/h3>\n\n\n\n
\n

Tekmetric data from 2024 shows that Repair Orders (ROs) authorized digitally have an average value 50% higher than those without digital authorization. By allowing customers to remotely view their estimates from anywhere by sending them via SMS and email, you empower customers with transparency and control over their
repair decisions.<\/p>\n\n\n\n

– Sunil Patel, Founder & CEO, Tekmetric<\/a><\/p>\n<\/blockquote>\n\n\n\n

Tip:<\/strong> Consider implementing digital estimate authorizations \u2014 they are a simple yet impactful way for your shop to build trust, deliver a seamless experience, and strengthen customer relationships.<\/p>\n\n\n\n

Digital vehicle inspections<\/h3>\n\n\n\n
\n

Adding thorough digital vehicle inspections (DVIs) to your workflow can quickly boost ARO with longtime customers and make a great first impression on new customers. DVIs help your customers clearly see what\u2019s happening with their vehicle \u2014 making them more confident in approving recommended services. In my role
traveling across North America, I see DVIs as a top focus for successful shops \u2014 one even tracks \u201ccompleted inspections\u201d as their top KPI!<\/p>\n\n\n\n

– Jonathan Moretti, Enterprise Solutions Engineer, Shopmonkey<\/a><\/p>\n<\/blockquote>\n\n\n\n

Tip: <\/strong>Perform detailed DVIs for every vehicle. Your goals should be to include images, videos, and notes to build trust with customers and improve their understanding of what needs to be done on their vehicle. This not only leads to higher AROs but also protects your shop by documenting the state of the vehicle when in your care.<\/p>\n\n\n\n

<\/p>\n\n\n\n

For more valuable data and tips, download PartsTech\u2019s full report: 2025 State of General Auto Repair Shops in the U.S.<\/em><\/h4>\n\n\n\n

Topics covered in the full report include:<\/strong><\/p>\n\n\n\n

\ud83d\udccd Shop demographics, size, and location<\/p>\n\n\n\n

\ud83d\ude99 Daily car count per bay<\/p>\n\n\n\n

\ud83d\udcb2 Average repair order value, labor rates, and parts profit<\/p>\n\n\n\n

\ud83d\udc65 Technician & service advisor staffing numbers per bay<\/p>\n\n\n\n

\u26a1 EV servicing trends<\/p>\n\n\n\n

\u26a0\ufe0f Industry challenges & solutions<\/p>\n\n\n\n

\ud83e\udd1d Technician hiring & retention strategies<\/p>\n\n\n\n

\ud83d\udda5\ufe0f Shop software usage and trends<\/p>\n\n\n\n

\n
Download The Report<\/strong><\/a><\/div>\n<\/div>\n\n\n\n

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